Paul McAuliffe (Dublin North West, Fianna Fail) | Oireachtas source

I wish to speak on the amendments that seek to remove the term "market value". I can understand the desire to do this if the reason it is included in the Bill is not understood. We go back to the discussion we had in the first session. Effectively, the LDA is a mechanism that allows for the transfer of land at a nominal cost, so that when homes are built they do not include a significant land value. Therefore, the process or calculation that allows us to do this is to take the existing market value and apply an affordability charge to the land. In doing so, effectively the land is rendered of little or no value because if it was traded on the open market it would not be possible to have a profit or the normal developer's levy. In other words, it would have nominal value. Not only this but the responsibility to provide affordable housing on the land stays with the land permanently regardless of who the owner is. It is a permanent devaluation in the cost of the land. To remove the term "market value" would, in essence, remove the starting point of this devaluation process and, therefore, while it sounds like a good headline grabber it actually takes out one part of the equation, which would result in a land value that is nominal and, therefore, not included in the final price of the sale or renting of these homes.